Dec 1 -- This is a Request for Information (RFI) issued by the U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM). The intent of this RFI is to obtain input in order for DOE to implement the future growth grants (Future Growth Grants) under the Carbon Dioxide (CO2) Transportation Infrastructure Finance and Innovation (CIFIA) program established under Section 40304 of the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL). FECM and DOE’s Loan Programs Office (LPO) are working together to provide direct loans and loan guarantees (CIFIA Loans) and Future Growth Grants that will support the development of regional and national CO2 transport infrastructure to accelerate the deployment and development of carbon capture and storage (CCS) projects. DOE has issued guidance on how to work with DOE to apply for CIFIA Loans through LPO. RESPONSES DUE: January 17, 2023 by 5:00 p.m. ET
Future Growth Grants may cover the cost of at least a portion of developing extra transport capacity up front that would not be contracted and utilized in the initial years of operation until CO2 suppliers such as carbon capture and Direct Air Capture (DAC) facilities are developed and come online. While additional investments up front to increase the diameter of CO2 pipelines and enable future additional pumping or compression can substantially increase pipeline capacity (thus creating large future economies of scale), this extra unused capacity is hard or even impossible to finance in the U.S. "open-season" approach to private finance of pipelines, which is based on pipeline developers demonstrating that they have locked in contracted demand up front to get to final investment decision (FID). These up-front investments in additional capacity could also help avoid future construction of additional transport infrastructure and associated environmental impacts. Increasing capacity in other supplemental modes of CO2 transportation including by freight and multi-modal transport are also within consideration. While freight modes comprise a smaller portion of the expected capacity increase, they may be required in lieu of pipelines or design of larger intermodal transfer stations may be necessary.
Coordinated planning for future growth in CO2 transport is required for DOE to implement the CIFIA program established under Section 40304 of the Bipartisan Infrastructure Law (BIL), which amended the Energy Policy Act of 2005 to add Section 999D (42 U.S.C. 16374). The BIL will invest $2.1 billion to provide Federal Government financing through CIFIA Loans and Future Growth Grants. The $2.1 billion may be used by DOE as credit subsidy to support CIFIA Loans or as Future Growth Grants. LPO and FECM are working together to implement this BIL provision as follows:
FECM and LPO issued guidance to inform prospective applicants about CIFIA and the application and review process for CIFIA Loans. See CIFIA Program Guidance, CIFIA Loans for Carbon Dioxide Transportation Infrastructure (Oct. 5, 2022), available at: https://www.energy.gov/sites/default/files/2022-10/LPO_CIFIA_Guidance_Document_FINAL_2022.10.05_0.pdf
In this RFI, FECM is seeking information on how to implement Future Growth Grants for CO2 transport as defined in Section 999D, to support expansion of CO2 common carrier transport systems to increase the flow rate when there is probable future increase in demand for CO2 transportation within the system.
FECM is issuing this RFI to implement CIFIA Future Growth Grants. Future Growth Grants support FECM’s research, development, and demonstration (RD&D) program in Carbon Transport and Storage. This program is making key investments in advanced carbon transport and storage technology RD&D, multi-modal transport infrastructure deployment, and the development of commercial-scale carbon storage facilities and carbon management regional hubs.
The purpose of this RFI is to solicit feedback from industry members, investors, developers, academia, research laboratories, government agencies, and other stakeholders on various aspects of CO2 transportation infrastructure capacity increases in order for FECM to implement the Future Growth Grants. Up-front investments in large-scale transportation infrastructure capable of transporting anticipated increases in CO2 flow rates and volumes could enable development of future additional carbon capture and DAC projects and help avoid future construction of additional transport infrastructure without having to build additional new transport infrastructure to accommodate that growth, thus achieving long-term economies of scale for all future CO2 suppliers and a reduced overall infrastructure footprint.
Topic 1. What factors are stakeholders modeling and/or planning for CO2 transportation infrastructure capacity increases? DOE has considered the following factors for future growth of CO2 transport infrastructure. DOE is seeking input from stakeholders on these factors and any additional factors that impact capacity increases.
1.1. Capabilities that exist to design and model future growth of CO2 transport infrastructure. Capabilities of these models and/or application to actual projects to provide detailed financial costs associated with using Future Growth Grants for proposed capacity increase.
1.2. Describe the business cases for capacity increases to base-design infrastructure or planned design of a new system that would increase to accommodate new capacity requirements for additional carbon capture, DAC, and carbon conversion systems, including what alternatives to the proposed capacity exist;
1.3. Useful life of the original existing or planned and expanded systems;
1.4. Planned CO2 sources, flow rates, specifications, and schedules for the initial design and for the proposed capacity increase;
1.5. Eligibility of systems as a large-capacity, common carrier infrastructure entity;
1.6. Regional availability of planned downstream sequestration sites or conversion customers able to accommodate the increased CO2 volumes of the initial design and capacity increases; and
1.7. Additional considerations.
Topic 2. What geographical, or map information is available for existing or planned CO2 transportation infrastructure with planned capacity increase? Please address one or more of the following factors when providing maps or geographic information in your response:
2.1. CO2 sources by type;
2.2. Specifications of the CO2 stream(s) for transport;
2.3. Downstream customers for CO2 conversion and/or sequestration sites;
2.4. The design, capacity, safety, and operating record of the CO2 transportation infrastructure system proposed to have a capacity increase;
2.5. The modes of transportation considered; and
2.6. Ability and/or limitations for multi-modal CO2 transport in the regional area of interest.
2.7. Provide a summary of the capabilities of existing models, analyses that have been completed, and the financial cost.
Topic 3. What are the environmental and community considerations for proposed capacity increase funded by Future Growth Grants? Please address one or more of the following factors in your response:
3.1. Vulnerability to the projected impacts of climate change (e.g., hurricanes, flooding, drought, sea-level rise, geohazards), and/or
3.2. Adjacency to or near population centers, including disadvantaged or distressed communities that may be impacted or benefit from this development;
3.3. Effects on workers in terms of work availability and job quality;
3.4. Plans to address societal considerations and impacts, including Community Tribal, and Stakeholder Engagement, Diversity Equity, Inclusion, and Accessibility, Environmental Justice and Quality Jobs.
Topic 4. What are the technical, regulatory, and permitting considerations for potential capacity increase funded by Future Growth Grants? This may include electricity, permitting needs, and requirements for siting construction and operation of any proposed CO2 pipeline or transport system. What state and local incentives are available or may be made available to support CO2 transportation infrastructure capacity increase?